Information published on 2 August 2016 in the UIC electronic newsletter "UIC eNews" Nr 511.

Czech Republic: SŽDC purchases energy for the whole transport sector on the stock exchange, bringing electricity and gas costs down by 30 million Czech crowns

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This year, the Ministry of Transport has again purchased energy effectively on the stock exchange. The Ministry has centralised its own consumption and that of other organisations and purchased almost 300 000 megawatt hours (MWh) of electrical power and more than 175 000 MWh of natural gas for next year through Správa železniční dopravní cesty (the Czech Railway Infrastructure Administration - SŽDC). The purchase was carried out in July on the Czech Moravian Commodity Exchange Kladno and has reduced costs for the whole sector by 30 million Czech crowns year on year.

Following the purchase for the whole transport sector two years ago which brought savings of almost 40 million Czech crowns, and that of one year ago which reduced costs by another 80 million Czech crowns, we have again increased the volumes purchased, with electricity up by 24 000 MWh and natural gas by 15 000 MWh. In addition to the Ministry of Transport and SŽDC, other organisations also participated in the purchase: České dráhy A.S. (Czech Railways), the Czech Roads and Motorways Directorate, the State Fund for Transport Infrastructure, ČD Cargo, the Centre for Road Transport Services, the Air Navigation Services of the Czech Republic, the State Water Navigation Administration, the Waterways Directorate of the Czech Republic, the Civil Aviation Authority of the Czech Republic, the Transport Research Centre, the Railway Research Centre Institute J.S.C. and DPOV A.S.. This is the fourth year we have purchased on the Kladno Commodity Exchange which is the most competitive marketplace for energy supply,

said Mr. Pavel Surý, Director General of SŽDC.

Next year, the price of energy will fall compared to current prices of other products. Above all, the price of natural gas for small-scale consumers will come down by more than 14% year on year. The price of low-voltage electricity will decrease by 12% compared to this year and that of high-voltage power by 8.5%. The price of natural gas for wholesale customers will fall by more than 7%. Thanks to the large volumes involved, the savings on this product year on year will amount to 8 million Czech crowns.

(Source: SŽDC)